Odisha Abolishes Professional Tax

Date of Notification: 21st April, 2026

Effective Date: 1st April, 2026

Issued by: Law Department, Government of Odisha

Reference No.: No. 5969–I-Legis-22/2026/L.

Gazette No.: No. 1496, The Odisha Gazette (Extraordinary)

The Governor of Odisha has promulgated Odisha Ordinance 02 of 2026 — the Odisha State Tax on Professions, Trades, Callings and Employments (Repeal) Ordinance, 2026 — thereby formally repealing the Odisha State Tax on Professions, Trades, Callings and Employments Act, 2000 (Odisha Act 7 of 2000).

Key Highlights:

• Professional Tax in Odisha stands abolished with retrospective effect from 1st April, 2026
• The ordinance was promulgated under Article 213(1) of the Constitution of India as the State Legislature was not in session
• Past transactions remain protected — all previous returns filed, taxes paid, assessments made, notices issued, and arrears to be realized under the old Act will remain valid and enforceable
• Any pending legal proceedings, rights, obligations, or liabilities under the repealed Act will continue as if the Act had not been repealed

Action Required for Employers:

• Stop deducting and remitting Professional Tax for employees in Odisha with effect from 1st April, 2026
• Ensure payroll systems are updated to reflect the removal of PT deductions for Odisha
• Pending dues and past filings remain subject to the provisions of the repealed Act

Please find attached the official notification below:

Notification_Professiona Tax_Odisha